Elkem 2Q loss widens as tariffs and weak solar demand hit silicon

Elkem

Elkem 2Q loss underscores pricing pressure and softer end markets. The silicon producer reported a 228mn kroner loss. Sales volumes rose 2% to 113,000 tonnes, but prices lagged. Therefore, Elkem 2Q loss reflects mix and margin erosion.

Prices, demand, and volumes

Lower silicon metal prices drove the Elkem 2Q loss despite higher shipments. Solar sector demand weakened from already reduced levels. However, ferrosilicon and silicon metal volumes held steady. As a result, revenue fell faster than output.

Management cited weaker demand and persistent tariff pressure. Meanwhile, customers delayed purchases amid cost inflation and uncertainty. Therefore, contract resets may arrive slower than expected. Elkem 2Q loss highlights limited pricing power this quarter.

Trade actions and market access

US tariffs restricted export options and redirected tons into Europe. Consequently, regional premiums compressed under additional supply. Additionally, US trade investigations raised compliance costs. These headwinds compounded the Elkem 2Q loss.

Norwegian exports now face prolonged policy and legal risk. However, targeted mix upgrades could buffer margins. As a result, near-term focus shifts to costs and cash. The company must preserve share while defending price.

The Metalnomist Commentary

Elkem’s challenge is cyclical price pain amplified by trade friction. The quickest fixes are cost discipline and product mix upgrades. Watch US cases, solar demand recovery, and quarterly pricing resets.